Chapter 14 WHITE-COLLAR AND ORGANIZED CRIME

1
White-Collar Crime
2
The Concept of White-Collar Crime

• Term white-collar crime was coined in the 1930s
• By Edwin Sutherland
• Defined as
• crime committed by a person of respectability
  and high social status in the course of his
  occupation.

3
The Concept of White-Collar Crime

• The U.S. Congress defined white-collar crime as
• An illegal act or series of illegal acts
  committed by non-physical means and by
  concealment or guile, to obtain money or
  property, or to obtain business or personal
  advantage.
• More stolen and life's lost to white collar

4
Difference in White Collar Crime?

• White Collar
• Any Crime committed through deceit by someone you
  would assume deserves respect
• Occupational crime
• Crime committed by individuals in the course of
  their employment (Lawyers, Doctors, any
  occupation creates criminals within that job)
• Corporate crime
• Criminal activity on behalf of a business
  organization

5
Globalcorp

• Read and answer the questions
• Do you agree with these sentences?
• What laws should Congress make to prevent these
  questionable and illegal business practices?

6
Law Enforcement Response to Corporate Crime

• Corporate crime is monitored and responded to by
  a variety of criminal, administrative, and
  regulatory bodies, but very few corporate crooks
  are ever the recipients of truly meaningful
  sanctions.
• Great wealth does confer a certain degree of
  immunity from prosecution and/or conviction.

7
The Enron Scandal Crooks Cooking Books

• The Enron scandal did tremendous damage to the
  economy, and created a crisis of investor
  confidence the likes of which hasnt been seen
  since the Great Depression.
• Took down one of the 5 big accounting firms
• What they did
• Made false entities to hide financial loses
• Cooked their books

8
Law Enforcement Response to Corporate Crime

• The Sarbanes-Oxley Act requires company CEOs and
  chief financial officers to personally vouch for
  their companies financial disclosures, ensuring
  that such people can no longer assume a stance of
  plausible deniability.
• The White-Collar Crime Penalty Enhancement Act
  creates new substantive offenses, significantly
  enhances financial and incarceration penalties,
  and relaxes some procedural evidentiary
  requirements for prosecutors.

9
Summary

• Take a look at Globalcorp
• Pick a White Collar Crime to learn about

10
White Collar Crimes

• Mail Fraud
• Securities Fraud
• Insider Trading
• Martha Stewart
• Bank Fraud
• Counterfeiting / Forgery
• Catch Me if You Can

• Insurance Fraud
• Investment Schemes / Ponzi
• Madoff
• Tax Evasion
• Capone
• Insurance Fraud
• Many More

With a partner pick a white collar crime,
research and create a brochure to teach others
about it.